Issuing Bonds at Face Value Assume that Devor Corporation issued 100, 5-year, 10%, $1,000 bonds dated January 1, 2022, at 100 (100% of face value). Assume interest is payable annually on January 1. The sale is recorded as follows: The bonds are reported in the long-term liability section of the balance sheet because the maturity date is more than one year away. The adjustment to record the accrued interest on December 31 is: Interest payable is classified as a current liability because it is scheduled for payment within the next year. Devor records the payment on January 1 as follows